common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm low t treatment, axiron. welcome to "mad money," welcome to cramerica. other people want to make friends, just trying to lose you a little less money than the other guy. my job is not just to educate but to coach so call me at 1-800-743-cnbc. glad that's over with. that's how the market tends to react to the big bad events and today was no different because after we got the dreaded month old federal reserve minutes, the market did breathe a sigh of relief momentary and rallied

back into the black before drifting lower once again because bond yields continue to climb. and as we saw last night, the charts are still very much against this market, which is why the dow only finished off pretty hideously, going 105 points, s&p slipping, nasdaq declining .38%. >> the house of pain. >> it was like we rallied back up to the top of the cliff and said, i don't know, what the heck do we do now? and then we decided to walk back. we didn't jump this time. although the averages still got whacked because we had nothing to buy when we reached the summit. before we get to why the market bounced back but then returned to lower levels, we have to spend a moment talking about the instant reaction to the fed minutes. one month ago, the fed debated about what to do about interest rates. she they continue to buy bonds? given the dramatic rise in the rates by the market itself, well, maybe they had to do something or maybe the attempt has failed. or should it slow down the bond buying, taper it so to speak in grudging recognition that the economy's a little bit better, right?

a little bit better than it has been? today at 2:00 p.m., you've got the release of those minutes. within seconds, the dow shed. minutes were released and then, bingo, straight line. blink of an eye straight line down. you have to believe the statements that things are growing in the economy, let's stop the bond buying immediately. just as the selloff was happening, steve liesman came on and said this statement was pretty much the same as the last statement and nothing new and cautioned us it was knee jerk and nothing more. or as i and my buddy will shakespeare, it was signifying nothing. those who merge the wisdom of macbeth with liesman made a killing. a killing, that is, if you sold when we got back to even. okay. now, we know the initial reaction was indeed knee jerk, this tells us that, right? but considering that bonds continue to go down after that rally, sending interest rates ever higher.

then there really isn't a lot to celebrate. when rates go higher, whether the fed wants them or not, and i don't think they do after this month's data, it's not a good thing for stocks. it's not, okay. it's not. and people come up with reasons why it is. i've been around too long. i don't like it when rates go up. i like when rates go down. the economy -- if the economy's cooling off from the rate increases, you know, it's not good news unless you got some business that's so strong it's okay. when the economy slows, earnings estimates get cut. when earnings estimates get cut, stocks go lower. the market's anticipating all that happening right now this minute. secondly, feeling sanguine about things a month ago when the fed met. a month ago we would have been shocked to learn that macy's, target had been negative about the consumer. we'd be willing to see how housing affordably went down a great deal while higher mortgage and refinance rates led to a dramatic decline in demand for either. the refinancings are off a cliff, people. those really are.

those jumped off a cliff. we would have been astonished to hear a terrific company like eaton had missed the numbers and taking down its own estimate for itself and the outlook down to 1% growth. that is dismal, people. given the transparency ben bernanke has instilled in the fed, it surprises me doesn't issue a simultaneous statement. come on, things have slowed down since then, we regret to release the minutes. as great as the numbers from urban outfitters, home depot and lowe's were, i don't think they would represent the psyche of the consumer. i don't know a single piece of domestic data that is as bullish as it was when they met and discussed what was in the minutes today. can you imagine? nothing's as good as it was. nothing. so you have to admit it's pretty stupid to trade off those dated words when things were still better.

at the same time, you have to call into question this rise in rates and the actual market of rates. it isn't like there are mortgage seekers now more than a month ago. i know there are many fewer, same with refinancings, those are down, some banks 50%. that's very bad for any increases in disposable income we need right now and that's necessary for retail. it isn't like all of a sudden we have huge infrastructure bills to rebuild the $3 trillion in broken down bridges in this country. the sequester was never undone as one more screw turning of the banks and obama wants one more round of tax increases. the federal reserve has to stay aaccommodated. there, republicans and democrats, bernanke keeps trying to offset in order to prevent a recession within a great recession. when the fed tightened as the congress and president tripped over each other to raise taxes and close the deficit. sound familiar? what do we do with this? good news and bad news for the bulls, mostly bad, which is why the market drifted lower after it rallied back. now that we've got the big bad piece of information, we can go

back to picking stocks. second to bad news, we keep having fewer and fewer stocks to pick from. tough to buy the banks when the attorney general wants to take them on for the sins of the past. at this point, i think it's better never than late. but i get the blood loss. it's fine. you've got to think about the elections in 2014, don't you? otherwise it's a nightmare for the companies that we keep thinking need to lend more than they have. they're spending more on lawyers than they are lending to customers. we can't buy the bond market equivalent stocks because the bond market itself is still in turmoil. rates going higher and that takes the bid out from under the 3% to 4% yielders, especially the utilities and real estate investment trust. tough to buy the housing, housing related stocks. wall street says hold it, not strong enough and home depot goes down, down a second day after a terrific number? the oils go down every day and exxon has been down 20 out of 21 sessions.

that's a remarkable statistic. the group's hideous, no buyers of any size and the industrials are breaking down, breaking down biggest. dan fitzpatrick nailed this decline. don't ask about the mineral stocks, i won't tell you. we would have loved to pick up some tech, but we feared it could be like intel or microsoft, the four other dow stocks that disappointed so we decided to wait and see to see what hewlett-packard said after the close. there were softer numbers from hewlett, but nothing disastrous, is that a reason to buy a stock? oh, look at that, it wasn't horrible. let's buy. tough. not as bad as it used to? buy, i don't know, stock's up big. if we can find growth in this environment. growth from biotechs, companies like google or starbucks or hain, you know how much we love that organic and natural food. that stock's smoking, worth grabbing at a discount. i think, nevertheless, but as you know as i highlight earnings growers, they are few and far between these days and vulnerable to higher rates too. the big and bad over the thing

that has us spooked is the past. we can stop fretting about the darn month old fed minutes. however, with the release of the fed minutes behind us and the subsequent decline now on our faces, we've got to find something to buy. at the moment, i'm plum out of sectors worth buying, at least until interest rates go up and begin to speculate on when they'll go back down to where economic activity justifies their trading. mickey in michigan. mickey? >> caller: hi, jimmy. madison square garden reported nice earnings today. the stock reported bad tape today and couldn't get a bid. so my question to you is they own some good real estate which may be undervalued. what's your take on this name? >> you have a company that does really well, the stock doesn't go up much. what happens on a bad day? i want to be careful of that stock. you know, it should have gone up more, and when it didn't, that makes me suspect. let's go to frank in new york, please. frank?

>> caller: hey, how are you doing? it's frank from new york. >> hey, frank. >> caller: b-b-boo-yah. >> i like that. we need that. >> caller: how you doing? >> i don't like days like today. i don't like days like today. i'm looking at it, i know people lost money today. it's not fun. >> caller: yeah, man. i understand. but good call on that -- on that celestial. i picked up some shares on that. >> i liked that. irwin simon, he does a fabulous job. that's great. all that kind of stuff. my producer's got a baby that uses that stuff all the time. my kids are grown, we don't use it. >> caller: i've got three quick questions. one is on that hain, what should i do from here? >> well, look, we've got to listen to the conference call. i never want to make a judgment. i know the stock's going up and people who buy a stock when the stock's going up well, you know what, let's sit back and take a listen. i'll do more work on it. go ahead. >> all right. and i wanted to know what's your take on the earnings for gap tomorrow?

>> well, my charitable trust owns it, we think it's inexpensive, retail in a world of hurt right now. what we are looking to do and told people is, listen, we're going to buy some. if the story holds up and the market doesn't, we'll buy some after they report. let's go to rick in florida. hey, governor, how are you doing? >> caller: good, jim, boo-yah to ya. >> nice to see you, sunshine. >> caller: fan of your advice for a long time. i wanted to get your take on how one might play the possibility of a combination between electronic arts and zynga. >> i remember when electronics arts was worth a lot less than zynga. that turned out to be a big mistake. playing the gaming cycle, by the way, new sony machine coming up soon. lots of different gaming cycles going to be hitting. that's good for ea but it's got to come down more. zynga, why bother? keep it now. it's like having a couple of bucks in your pocket. i keep them there. who's afraid of the big bad event? the market is, that's who. the event has passed, the not so good news, we're stuck with picking stocks in this

environment. not a lot to like. stay with cramer. >> coming up, unplugged? shares of industrial power house eaton have been running low on energy after reporting earlier this month. will a spark soon light up the company? or could international markets generate more trouble. stay tuned for cramer's exclusive. and later -- on tap. cramer's taking a bite out of this market's hottest themes. he crowned the king of beer. and tonight, he's getting a closer look at the craft with the founder of brooklyn brewery as cookouts with cramer continues. plus -- pull back prep, worried about steeper declines, make sure your portfolio's prepared for what could be to come when cramer plays "am i diversified" all coming up on "mad money." don't miss a second of "mad money."

follow @jimcramer on twitter. have a question? tweet cramer #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. diarrhea, gas, bloating? constipation, yes! one phillips' colon health probiotic cap each day helps defend against these digestive issues... with three strains of good bacteria. [ phillips' lady ] live the regular life. phillips'. a talking car. but i'll tell you what impresses me. a talking train.

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in this environment, what do we do with a big diversified worldwide industrial play like eaton. manufactures everything from electrical control products to hydraulics, truck transmissions. last year eaton bought cooper industries doubling down which is a big reason i own the stock for my charitable trust. here's the thing, though, despite being a fabulously run company back at the -- eaton reported a quarter that many considered not so great. the company reported the recent earnings beat, revenues came in light and the guidance wasn't as strong as some of the analysts expected. eaton's huge electrical business was weaker, something mainly caused by the not so healthy economies of europe and china. the stock got dinged nearly four points on the news and it hasn't come back since. but you know what, if you

believe like i do that europe could be turning and china could be getting better, it may be fabulous news for eaton. the stock is up 12% and it's more than tripled since november of 2008. let's check in with sandy cutler, the chairman of eaton, find out more about the company and where it's heading. mr. cutler, welcome back to "mad money." >> thanks, jim. >> sandy, we're watching now every tick of the bond market here. we saw the 30-year go to 4%, right at about 4%. we've got the ten-year almost at 3%. are you watching tick by tick? and does this influence your business say over the next year? >> i think the bond market and the set of expectations around it are a reflection of a gradually curing global economy. and i think what we're all trying to get used to is that from 1990 to 2007 time period, we saw robust growth around the world. and this new normal of the fifth year of the recovery, we're seeing global gdp be a point to point and a half less.

so i think the key of this environment which is gradually getting better, the company that can produce profit despite the fact that global growth is going to be lower than the old normal was in recent years. >> you in particular in this quarter change your growth outlook for the world rather dramatically from the first quarter. >> we did, and what i think's pretty unusual if you look at 2012 and 2013, you've seen global manufacturing and industrial production grow more slowly than the expansion and the gdp. and as you well know, the beta for industrial manufacturing is normally means that you're going to have higher growth in manufacturing industrial production than you did in global gdp. we think there's a prospect that reverses in 2014. so this transitional couple of years of '12 and '13 where you've come through real negatives from europe, real negative from china and real negative from india, we think the fundamentals are there that europe is beginning to emerge from a six-quarter recession, china is acclimaing to growth in

the 7% level for gdp and industrial production. the u.s. is slowly getting better. but what all this means is that, you know, from moving from sort of a "c" grade, we might be moving to "b" grade. that's better news. >> you said and i quote, until you solve the fiscal issues here in the u.s., you've got relatively low growth similar to what we've been facing. sandy, i'm a realist and i think you are too. the idea of solving the fiscal issues, i don't see how that can happen. >> it's harder to see the crisis that causes the platform for that, jim, right now, i would agree. but what we have been seeing here in the u.s. is gradual improvement. we have seen this unusual relationship between industrial production. and we think that's part of the hesitation and the inventory, frankly the second quarter was a clunker in terms of the industrial side of the economy .1% increase in the industrial production at a time when the first report was 1.7 on gdp.

we think that a lot of the items that have been the negatives in '12 and '13 go to a flat and perhaps you see europe start to grow a little bit in '14. we're not talking about the historic numbers, just get back positive instead of negative. get china to stabilize around a real seven versus some of the numbers that haven't been as fulsome on the industrial side. and the u.s. may not start the year with as much uncertainty as we did this year when we were coming through all the sequestration discussions and it seems a little bit more stable than that. clearly japan is in a progrowth policy push, as well. >> sandy, you posted flat, organic growth in q-2 in electrical. the depiction of what you just stated would indicate to me that i might be able to make a claim that could be trough. >> well, we think this year, this comparison of industrial production, we do feel next year's going to be a better year than 2012 from what we can see. albeit, it's a number of months away. we think a number of these negatives may start to turn into a positive.

we've got the additional and positive issue with our acquisition of cooper, in spite of this relatively weak end market outlook, about 1% in our case this year, we think there was some very good news inside our second quarter. our sales were up 38%, our operating earnings up 32%. we recorded all-time record margins. we also reported an additional $55 million of additional productivity beyond our 33% incrementals. and then we raised our estimates of our synergies by $25 million this year, $35 million by 2016. we think those are the indications of a firm that can really create its own source of profits in spite of these slower growth markets. >> i think definitely, sandy, the combination is terrific. but i also noticed we did your financials that you combined auto truck into one segment called vehicle. some have speculated that may be the beginning of a possibility of spinning it out since it does not have the growth of the new cooper eaton.

>> well, we actually did that combination at the time we said we were going to change our two reporting segments and electrical. we combined our two vehicle segments we had reported separately. frankly, we run them as one business. and i think many people have noted in the second quarter our margins were 17.2% and our vehicle business and had very solid growth from the first quarter, second quarter, first quarter in a sequential basis. we are a power management company, those are businesses that we like, we've commented on a number of different forums and we think they're creating real value. >> okay. i know you've always referred to these architectural billing numbers, 52.7% from 51.6%, nonresidential construction, incredibly important. are these heartening figures? do you tell your staff there's better times ahead? or is everything so uneven and a little bit of a blip here and blip there, you can't even use these numbers anymore? >> you're right, nonresidential

construction is about a 30% driver for our global electrical business with about half of that in the u.s., about half outside the u.s. i think the important thing to look at, more than abi is to look at the private put in place and the government put in place construction numbers in the u.s. this year, we think as a result of sequestration and federal budget cutbacks, you're taking up to a point off of the overall numbers because the government numbers are coming down from the stimulus number years ago. i think the real question is, will we see that frictional loss on '14 versus '13. we think it's likely to be less. we're likely to return to a little stronger market on non-res and that's good news for us. >> thank you so much for coming on the show. great to talk to you again, sir. >> thank you very much, jim, always good to talk with you. >> that's sandy cutler from eaton corp. didn't hear anything that makes me feel like i've got to panic or worry about. at the same time, obviously, 2014 can't happen soon enough. after the break, i'll try to make you more money.

coming up -- on tap, cramer's taking a bite out of this market's hottest themes. last night, he crowned the king of beer. and tonight, he's getting a closer look at the craft with the founder of brooklyn brewery as cookouts with cramer continues. every day we're working to be an even better company - and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations,

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last night, as part of our cookout series, i mentioned a major trend that's sweeping not just the nation but the entire globe. it's the rise of the craft beer. a home grown industry that's taking the rest of the world by storm. maybe you're like me and when you think of craft beer your mind goes along to somebody sitting in a man cave. although the imagery might be happening because "breaking bad" is finally back. but the truth is, this is a real business. exports of craft beer soared 72% last year and the markets in canada, china and brazil, you don't think of them as craft beer places. normally you know we normally focus only on publicly traded companies on this show. but sometimes a trend is so hot we need to look at a privately held firm. which brings me to brooklyn brewery. the company behind brooklyn brown ale and other beers sold in 25 states and 20 different countries, 25th anniversary. last year, these guys sold 176,000 barrels of beer. that's very impressive, especially in an industry that's

been dominated by the gigantic national players like bud molson, tap, brooklyn breweries and others are the reason i told you to ring the register on boston beer, aka sam adams, because that's the largest craft beer brand and the competition from the smaller players is on the rise. that's why i want to talk to the co-founder and president of brooklyn brewery in order to find out about his company and industry. and the deeper existential questions like how to make a great beer. welcome to "mad money." >> thank you, jim. >> thank you. thank you, steve. i'm a big fan of yours. i had a huge blowout oktoberfest party at your brewery. a fantastic time. i want to ask you point-blank. >> yeah. >> can you -- and companies of your elk ever bring down the entire edifice of what we know of the big brewers having anything to do with craft. >> well, i'll tell you, jim, we started 25 years ago, imports were 3% of the market, and we felt we were competing for that

segment, the import segment. >> right. >> 25 years later, imports are about 13% or 14%, craft beer is 10%. so we've actually pushed the big guys back. >> okay. >> -- significantly. people are drinking less beer these days, but they're drinking better beer. >> now, is there some sort of issue here? is this a revolt against the machines telling us what to do? is it because of taste? is it because of regional differences? what are the reasons behind that incredible take away? >> i think it's all of the above. for craft brewer -- i'm writing a book now called "the craft beer revolution." >> great. >> it'll come out next spring telling the whole story. and in the hearts of all craft brewers, we were fighting against the giants. but now we're kind of maturing and the game is kind of changing. the giants are getting into our territory and they see we're taking a lot of market share from them. >> one of the things that was

amazing. we had sally smith on, the ceo of buffalo wild wings not that long ago. and in order to get things going, she's brought in red hook brewery. she's saying you've got to have craft beer. isn't that that crossover that you're really looking for? >> it is. that red hook brewery is doing a special beer for buffalo wild wings. that is not a game that we're interested in playing. we don't have the capacity to do that, and we want to focus on our brand on the brooklyn brand and build that brand. not someone else's brand. >> okay. well, what confuses me is cost structure. you've got all these brands. i go into the store, you've got seasonal brands, you've got the big guys can't afford to do that. how can a little guy afford that? >> well, the big guys can afford to do that. the problem for the big guys is the scale of their operations is -- is such that they can make 200,000 barrels like i do and it's a drop in the bucket. >> doesn't move the needle for them. >> it doesn't move the needle, exactly. >> okay. now, let's talk about ingredients for a second. we are big believers in natural

and in health as a major wave. is there anything different, actually about a brooklyn lager that fits that pattern versus if i had a couple of buds here. >> well, it's light lager beer, it doesn't have the range of flavors that brooklyn brewery does and that's the game we're playing, we're creating brands in all different styles of the rainbow of beer styles that's available. and that's what the big guys have a tough time doing. the more they promote flavor in beer, the more they undercut their big horses, which are the light lager beers. >> they can't afford to promote both. >> it's a dilemma for them. >> how about where beer is consumed these days versus where it used to be. >> well, there's less beer consumed on premise these days. more beer consumed at home. actually, there's been a huge

drop in beer consumption in the united states in the last 4 1/2 years. >> shocked at how big it is. >> it's a huge number. in the last 4 1/2 years, the two big brewers have dropped 16.5 million barrels of beer. that's more than the whole craft segment combined. it's -- people are drinking less beer but they're drinking better beer. >> why? soda's down but nowhere near where beer is. internationally they love it. here they decided to shift tastes. how can tastes change? >> tastes can change. >> how can that be? >> of course it can. i mean, look at ice cream. i grew up with half gallon cartons in the refrigerator. >> you and me both. that's what we had. >> exactly. coffee, look at coffee, specialty coffee now is more than 30% of the coffee market. the big coffee makers are suddenly trying to make, you know, starbucks kind of coffee. and the same thing is happening in beer.

people are looking for something more in the flavor of their products in all categories. cheese, wine, beer -- >> is it getting too easy, though? can too many people get in this business? i've got a buddy, he's opening up a brewery. is it too easy? >> well, there are 2,514 breweries across the country today. 30 years ago, there were about 40. there are another 1,500 in the works. >> holy cow. >> could it go to 4,000? >> i guess so. >> there are 4,000 wineries in california. we can take 4,000 breweries in america. there are 300 million people here. before prohibition you had 2,000 breweries in the u.s. and the population was like 80 million. >> oh, and that's the right call, absolutely. well, steve, i want to raise a glass to -- whoa, yeah, let's do that. that's the good one. >> this is -- >> i'm not raising this to miller 64, by the way. >> good. >> miller 64, have you had that?

i was way out of line with that. thank you. >> this is a belgian style beer called brooklyn local one. 9% alcohol, very flavorful, great with seafood, great summertime beer. i love your office here. >> you can come here any time. bring your friend who is a buddy of mine too. >> i will. >> i want to thank steve hindy co-founder of brooklyn brewery. and stay with cramer. >> cheers. the great outdoors...

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i like to think of myself as a guy who has experienced things, done things, tasted things. i admitted to the founder and chairman of wendy's that i've never ever tasted a wendy's

pretzel burger. he wouldn't stand for it, maybe he was disappointed that he sent over this special delivery. jim, i thought you and the cnbc team would enjoy a wendy's pretzel bacon cheeseburger, all the best, nelson. we'll do a "mad money" taste test and check out @jimcramer on twitter. so with full hearts and hungry bellies, we dedicate this "lightning round" to you, nelson peltz, and remember to tweet me #cramerscookout for any questions you may have. now it's time for the "lightning round" on cramer's "mad money." rapid-fire calls, you say the name of the stock, i tell you whether to buy or sell. play until this sound -- and then the "lightning round" is over. are you ready skee-daddy? time for the "lightning round" on cramer's "mad money." start with linda in new jersey. linda? >> caller: boo-yah, jim. thanks so much for all you do for us home investors. >> well, i'm sure out there trying, linda, thank you. >> caller: i want to find out

whether you think sinclair broadcast group is a buy at current levels. >> i happen to like that media business very much. it's got a little bit of yield. i think it's done quite well and continued to do well and a little weakness. the market's not going higher, but i agree, i think it's good. let's go to linda in connecticut. bunch of lindas. linda? >> caller: hi, jim, how are you? >> how are you, linda? >> caller: i'm fine. i've read a little bit on plains all american pipeline. i wanted to know your opinion. >> normally i would say absolutely, yes. but this stock yields 4.5%. if that ten-year treasury goes above 3%, this stock's going to drop 5% to 10%, i'm not kidding. so we've got to wait to see if that happens or not. i'm not biting because it only has 4.5% yield. let's go to nancy in new mexico. nancy? >> caller: boo-yah, jim. my forward looking troubador. >> thank you. >> caller: anyway, i'm considering buying shares in western union.

>> i like that. this company is starting to do much better. it's been on a roll, had a little pressure, that pressure's over. i think western union is a good stock to own. and i need to go to john in pennsylvania, please, john? >> caller: hey, boo-yah, jim, this is john from state college, p.a. we'd like your opinion on the trucking stock old dominion freight line, odfl. >> love the nittany lions first of all, that is a good stock but i prefer the rails here. why? because the rails have less competition. this has been a winner. i wouldn't tell you to sell it. but i do think if you had a new position, i'd start with rails. let's go with stan in florida. stan? >> caller: jim, boo-yah from florida. >> oh, i know where that is. >> caller: thanks for all you do for us little guys and i love your actions alert. >> i'm sorry, go ahead. >> caller: i bought some reits recently, reinvested dividends but one of them is starting to scare me.

i was trying to hold them for five years but i'm scared. >> don't be scared but be worried about the yield. 4% on the 30-year, people are going to sell this stock and you'll be able to buy it lower. i think that $75 is where i would take a stand, not here on vornado. let's go to allen in new jersey, allen? >> caller: hi, jim. >> alan, what's up? >> caller: i'm a senior, i have my portfolio in high-yield dividends averaging 5.5%. not looking for growth, i'm thinking of ntidcl. >> to me that is such a red flag, all of these i think are coming down. i think the earnings are too high, when they cut the dividend or trim it, people get upset with me so i've got to put you in the -- >> don't buy, don't buy. >> eric in texas. eric? >> caller: hey, jim, san antonio, boo-yah to ya, sir. >> i love san antonio.

one of my favorite towns. how can i help? >> caller: hey, listen, i just acquired taser international ticker symbol is tasr, is it a buy, buy, buy or a sell, sell, sell? >> we believe this stock has nice momentum. that quarter was terrific. i like you. you've got horse sense. i need to go to mike in pennsylvania. mike? >> caller: how you doing, mr. cramer, i was curious if the interest rates go higher or lower, how it might affect the price in my shares in bank of america. should i stay or run like shady mccoy on a good sunday afternoon. >> by the way, chris polk might be asleep for 15th round. rite aid, i like rite aid. here's the problem about the banks. we've got the justice department going after them, we know that re-fis are down, the numbers are too high. wait for numbers to go down and then you can buy. morgan in california, morgan? >> caller: hey, boo-yah to ya, mr. cramer. how are you doing?

>> all right, morgan, how about you? >> caller: doing great. i think we saw some leadership we were looking for in the market today, really made me feel better. and my question is my stock is hasbro. i've got a 3-year-old son, and this stock is quite intriguing to me. what can you tell me? >> i like hasbro, a nice yield protection 3.5. people say, jim, you didn't like the 3.5 or the others, hasbro's got momentum, a well-run company and it's not tied up to the real estate investment trust index. i think hasbro is good, i like the idea. dallas in pennsylvania. what is it like -- it's already like the season's begun. dallas in pennsylvania, dallas? >> caller: hey, dr. cramer, thanks for taking my call. >> oh, man, i could use a doctor on a day like today. what's going on? >> caller: fltx. >> we looked into this stock, it's a software service play and we think it's absolutely terrific idea. it's the only one in the actual business of managing fleets.

it's kind of like they got -- kind of like workday. very specialized services doing well. let's go to cory in california, corey? >> caller: mr. cramer, big stuck in traffic boo-yah! >> all right. i guess you have to be somewhere. everybody has to be somewhere. what's up? >> caller: got to be somewhere. ebay, we're looking for the next six months on ebay. >> all right. we sold some. stephanie link and i are very disheartened about the action in ebay. we think the stock doesn't act well and that the numbers while we think are okay, at a certain point, you know what, you just said i can't take it. the stock doesn't act well. terrible reason to sell, but we did it, we trimmed. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. ws m] [ sizzling ] more rain... [ thunder rumbles ] ♪

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long. follow @jimcramer on twitter and tweet your questions #madtweets. taper, taper, taper. fear or not to fear. well, that is today's question. well, i'm going to tell you that shouldn't panic because there are steps you can take to protect yourself and your investments no matter what the market and fed throws your way. it's called diversification. ♪ hallelujah which means making sure you don't have all your eggs in one basket should the market go down like it did today. what's the drill here? why don't you call me and tweet me @jimcramer. a lot of good back and forth there lately. you tell me your top five holdings, i tell you if it's diversified enough or maybe you need to mix it up a little. tonight from fsu, i think it's probably go noles who writes am i diversified, starbucks, disney, holly frontier and huntington bank shares #madtweets. let's go to work.

okay. disney diversified entertainment company getting whacked here, one of the worst performing stocks in the dow, huntington, oils are down, i like them, starbucks yet under $70, that's a bargain and ford. we've got auto, entertainment, bank, let's call it retail, all right, and we've got refining and that, my friends, is perfect. ♪ hallelujah >> brian in florida. brian? >> caller: big boo-yah, jim, from florida. >> say hello to my friend down there in the sbi. what's up? >> caller: my top five stocks are exxon, at&t, mcdonald's, johnson & johnson, general electric. cramer, am i diversified? >> i love a guy who likes big cap old names, let's go to work here. general electric, my charitable trust owns, at&t the yield's getting attractive, exxon, 20 out of 21 days it's gone down. j & j for my charitable trust,

the level to buy, mcdonald's is a retailer, restaurant, restaurant, telco, oil and pharmaceutical, how about brett in pennsylvania. brett? >> caller: cramer, my mom thinks i'm not diversified boo-yah. >> don't take it personally, boo-yah. maybe you're from the western part of the state where things are going well. what's going on? >> caller: here's my portfolio, bgc partners, bcp, chestnut express, mic, coke, ko, and mdlz. >> wow. >> caller: how i am doing? >> you're a little bit -- i would say you're a little bit of a gun slinger with that portfolio. i don't know, man, i've got to think about it. pets express and pet pharmacy, that's a little gutsy, bgc, we had to walk away from that one because it crushed people.

but, you know, it could be okay. it could be okay now. it's down 2% for the year. that's a cable company. not actual cable but the cable. coca-cola, that's a soft drink, i'm not sure this is the infrastructure company or the bank. i believe it is the infrastructure company. yes. and mondelez is snacks. we've got food, snacks, we've got beverage, we've got infrastructure and we've got cable. okay, infrastructure and cable is fine. we're going to have to get rid of mondelez or coca-cola. i'm going to go back to my old favorite bristol-myers if we can get that at $40. bill in ohio. bill? >> caller: hello there. >> hey, bill. >> caller: how are you doing? >> just okay. how about you? >> caller: i want to thank you for all your help. >> i wish i could be more helpful on days like today. it's so hard on days like today. >> caller: we're going to come back. you watch. >> i need to be cheered up every now and again.

particularly after they fired my friend charlie. go ahead. >> caller: okay. i've got five stocks here. ford, facebook, verizon, super value, u.s. air. >> wow. very interesting. okay. well u.s. air, the attorney general decided to take your name out and -- airlines, if the deal went through with amr, that was the trade. airline doing okay. they're not as bad as they used to be. airline, telco, tech, supermarket and auto, that's total diversification, i say congratulations. ♪ hallelujah >> to all of our players tonight and stick with cramer.

you're not made of money, so don't overpay for boat insurance. geico, see how much you could save.

yesterday we heard terrific things about the consumer from tjx, urban outfitters, best buy and home depot. you left here thinking things were pretty darn fabulous and the problems we heard about from macy's, nordstrom's, saks, and walmart are about what's going wrong in the department store business, particularly apparel. we had a weird spring weather wise and there's to doubt about it, higher prices are weighing on people that aren't that conducive to buying clothes. but it seems to be limited to clothes. lowe's reported a totally bang-up quarter with strength in pretty much everything that goes in a house. it's truly impressive. you have to say lowe's is

hitting on every cylinder. this remarkable turn and while the stock's up 25%, i could see it going higher with a caveat to mention at the end. while lowe's execution was the perfect response to the same store sales growth, lowe's would be the first to admit the company's operating with a huge tail wind, the housing recovery. appliances, outdoor goods, kitchen cabinets and fancy plumbing sales were so strong. best buy may not have crushed the numbers, but it's darn clear that it too operated with a housing tail wind, as you spend money on your television, stereos and movie studios. tjx singled out terrific sales at the home goods division, urban outfitters talked about stronger sales for anthropology. yes, walmart, target and macy's have exposure to products that go in your home, but when you buy an existing home or want to remodel or when a contractor decides to build a new one, they don't go to walmart, target or macy's, they go to home depot. i wonder whether the target and walmart which moved aggressively

in food wished they had product array like lowe's, home depot. forget about it, pure and simple. perhaps the best way is to say the consumer's got choices. she's going to spend it on her home or herself. she hasn't been spending on her home much until the last few quarters. really accelerated now as it did at lowe's. certainly worries about the new health care plan coming. what i think is happening after listening to the conference calls is that the consumers held back on home spending because what the heck is the point of sprucing up your home if it's losing value. now it pays to fix up your house. it's a better investment than it's been. there's not much disposable income. now favoring the house not the body plain and simple. if you conclude, though, that the consumer's shot, i think that's the wrong take away. but if you conclude there's a zero sum game going on between the closet and the rest of the home, i think you've analyzed the retailing as stark and different as it's been since housing peaked years ago.

let's make no mistake about it. if interest rates keep going up as they did today, even the home depots and the lowe's will not stay up here for long. stick with cramer. every day we're working to be an even better company - and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger.

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every day we're working to be an even better company - and to keep our commitments. and we've made a big commitment to america. bp supports nearly 250,000 jobs here. through all of our energy operations, we invest more in the u.s. than any other place in the world. in fact, we've invested over $55 billion here in the last five years - making bp america's largest energy investor. our commitment has never been stronger.

meg whitman, ceo of hewlett-packard interviewing her tomorrow on "squawk on the street." tough day today. there's always a bull market out there, i promise to try to find it for you here on "mad money." i'm jim cramer and i'll see you tomorrow. >> welcome to the marriott. >> hello. how are you? welcome back. >> every year, 36 million americans spend the night. >> good morning, this is your wake-up call. >> a hotel empire with 18 brands and 3,700 properties around the world. >> we don't do things ordinary. we do it extraordinary. >> a crown jewel obsessed with service. >> the ritz-carlton is a place where the genuine care and comfort of our guests is our highest mission. >> who else goes through 1.4 million towels and 200,000 slices of bacon a day? welcome to maio